EQ Resources Limited (ASX:EQR): What Do September 2026 Tungsten Results Reveal?

Aditi Sarkar

06 November 2026 02:16 AM AEDT

EQ Resources Limited (ASX:EQR): What Do September 2026 Tungsten Results Reveal?

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Highlights

September-quarter Revenue reached AUD 158.8 million, compared with AUD 79 million in June quarter.
Tungsten output increased to 51,233 metric tonne units during September 2026.
Group cash at 30 September 2026 totalled AUD 82.4 million.
FY2027 production guidance was set at 240,000–280,000 metric tonne units.

EQ Resources Limited (ASX:EQR) produces tungsten through its Mt Carbine operation in Queensland and Barruecopardo mine in Spain, while advancing processing and resource-development initiatives. The company reported higher tungsten output, sales and realised pricing for the September 2026 quarter. Shares closed at AUD 0.310 on 5 November 2026, the date used for this review of its latest operating disclosures.

Tungsten Operations and Quarterly Production

The September quarter opened FY2027 for EQ Resources Limited (ASX:EQR). Group tungsten production rose to 51,233 metric tonne units (mtu), from 28,315 mtu in the June quarter, an 81% sequential increase. One mtu represents 10 kilograms of tungsten trioxide content. Production volumes must be assessed alongside recoveries and mine operating conditions.

At Mt Carbine, production increased from 13,050 mtu to 17,145 mtu as the reported gravity plant recovery improved from 68% to 78%. Barruecopardo produced 34,088 mtu, against 15,265 mtu in the preceding quarter. The larger contribution from the Spanish operation was significant to the group-level output change. Both sites still face mine scheduling, processing efficiency and equipment-availability requirements that determine whether quarterly rates can be sustained.

Revenue, Costs and Cash Position

EQ Resources Limited (ASX:EQR) reported September-quarter revenue of AUD 158.8 million, compared with AUD 79 million in the June quarter. Tungsten sales increased 69% to 49,715 mtu, while the average realised selling price advanced 20% to USD 2,248 per mtu. These figures show the separate effects of sales quantities and selling prices on revenue; they should not be interpreted as a forecast of subsequent quarters.

The group reported quarterly EBITDA of AUD 122.5 million and net profit after tax of AUD 114 million, both unaudited. Operating Cash Flow totalled AUD 75.6 million. Closing cash was AUD 82.4 million, with receivables of AUD 51.5 million. The reported cash cost decreased to USD 483 per mtu from USD 711 per mtu in the prior quarter. Operating cash generation and receivables are important, but they do not eliminate the Capital requirements associated with expansion projects.

Expansion Plans and FY2027 Guidance

The company guided to FY2027 tungsten production of 240,000–280,000 mtu and cash costs of AUD 595–691 per mtu. Its planned Capital Expenditure for the year was AUD 80–100 million. These are company targets rather than completed outcomes, and should be assessed against future production reports and actual expenditure.

The AUD 39 million Mt Carbine automation and expansion project was reported as on track for commissioning in the third quarter of FY2027. Resource and reserve work at Mt Carbine, Barruecopardo and Wolfram Camp was also advancing. A completed 17,233-metre Mt Carbine drilling campaign had its samples submitted for laboratory testing; results remained pending in the quarter report. EQR also disclosed a 10% interest in a proposed US tungsten-processing venture associated with the Springer plant in Nevada.

Risks, Monitoring Points and Key Insights

For EQ Resources Limited (ASX:EQR), the next reporting periods will test whether the improved production and cost metrics persist as Mining sequences and processing conditions change. Commodity selling prices, foreign-exchange movements, recoveries and unit costs can materially alter profitability even when output grows. The group also needs to coordinate resource updates, construction activities and Working Capital while funding its capital program.

Key Insights

The September quarter combined higher tungsten volumes and realised prices with positive operating cash flow. Management has provided measurable FY2027 production, cost and capital-expenditure ranges. Investors can monitor subsequent quarterly results, Mt Carbine commissioning, mine-level recovery trends and resource updates to compare execution against those stated objectives.

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